COBRA and walking off the job - Gross Misconduct?
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We have two employees who abruptly resigned and then convinced about 8 others to walk off the job. These two employees may be undergoing some legal investigation as we have since found out that there may have been some shady business going on.
Do we have to offer all of these employees COBRA continuation or are their actions considered gross misconduct?
Thanks!
Comments
We have two employees who abruptly resigned and then convinced about 8 others to walk off the job. These two employees may be undergoing some legal investigation as we have since found out that there may have been some shady business going on.
Do we have to offer all of these employees COBRA continuation or are their actions considered gross misconduct?
Thanks!
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Sounds like what they did constitutes protected concerted activity (see Wagner Act or National Labor Relations Act). Whether that's true or not, it's not gross misconduct for the purposes of COBRA. The gross misconduct standard under COBRA sets a pretty high bar and I doubt quitting and getting others to quit would meet that standard (does that really "shock the conscience" or is it truly "reckless indifference by engaging in unauthorized conduct" in the absence of an employment contract?) Moreover, the burden of proof on gross misconduct is on the employer. These people didn't steal from the cash drawer or monkey wrench operations, they simply exercised their right under employment at will. Where is the gross misconduct?